The island of Sumbawa is located in the central part of the tectonically active, eastwest trending Sunda-Banda magmatic arc

that marks the convergence of three

major tectonic plates (Hamilton 1979). The geology of Sumbawa is characterized by
an island-arc type volcano sedimentary succession of Late Oligocene to Quaternary
age.
The southern parts of Sumbawa Island are overlain by Late Oligocene to Middle
Miocene, low-K calc-alkaline to weakly alkaline andesitic volcanic and interbedded
volcaniclastic rocks, associated low-K intermediate intrusions and shallow marine
sedimentary rocks and limestones (Garwin, 2002). Overlying dacitic rocks are locally
mapped in the region, which mainly occupy higher topography. The youngest rocks
in the region are products of Recent and Quaternary volcanism and are generally
located in the north of the islands and have not been a focus of exploration because
of the limited exposure of the hydrothermal systems by erosion.
A series of eroded overlapping volcanic centres with associated fringing sediments
make up the Tertiary arc, and are represented by a thick mass of andesitic
pyroclastics, flows, intermediate intrusives, shallow marine sediments and
limestones. The sequence is exposed in the southern two-thirds of western
Sumbawa with elevations up to 1,500 metres. Tertiary rocks are also evident in the
north of Sumbawa, where they are thought to form the basement rocks to more
recent volcanism.
Intrusive rocks are commonly exposed in an east-west belt in southern Sumbawa.
Older intrusives are commonly diorites and microdiorites and occur as dykes and
stocks intruding the volcanics and sediments. Later tonalite intrusions are spatially
and temporally related to the main porphyry Cu-Au mineralization, whereas older
dioritic intrusions and stocks are related to earlier similar mineralization types but
commonly lower grades (0.2 to 0.4 % Cu). Diatreme dome breccia complexes have
been mapped peripheral to dacite porphyry intrusives. Dacitic pyroclastics
unconformably overly the andesitic sequence. A thick blanket of volcanoclastic
rocks (debris flow sequence) is exposed along the southern coast of Sumbawa.
Strong conjugate systems of NW and NE faults are the dominant structural features
at both district and regional scales. On the basis of structural features in the Batu
Hijau district and other localities, NW trending structures are more readily observed
than NE fabrics. NE trending lineaments are evident from airphotograph analyses
and satellite-airborne image interpretation, but observed only as minor and
discontinuous structures in the field. The structures are interpreted as results of
north-south directed subduction related compression and subsequent relaxation
along the volcano-plutonic arc, where plate convergence is nearly orthogonal to the
arc (Garwin, 2002).
Property Geology

The majority of the East Elang property area is underlain by an andesitic volcanic
unit comprising tuff, lapilli tuff, breccia and lava, with localized intercalations of
calcareous sediments and limestone. Dacitic volcanics, which are restricted to high
topography, are inferred to unconformably overly the andesitic volcanic unit.
Maryono (2005) infers, based on mapped porphyry-type stockwork mineralization at
the Newmont Elang-Dodo gold-copper porphyry discovery, that the dacitic volcanic
unit predates the main Cu-Au porphyry mineralization event.
Mineralization at Elong-Dodo comprises a complex of polyphased felsic to
intermediate intrusives that generated multiple mineralized porphyry centres
(Eland, Gergang, Kuning and Sepekat) along a NNE trending structural corridor. Rock
geochemistry of surface and drill hole samples demonstrate a NE-SW elongate
copper zone more than 1.5 km long by 0.8 km wide.
The andesitic to dacitic volcanics include crystal tuffs, tuff breccias, with
intercalated volcaniclastics and andesite aphanitic to porphyritic textured flows and
dykes. Limited exposures of andesite porphyry intrusive have been noted. Propylitic
alteration is ubiquitous throughout the area, with argillic assemblages limited to
fault/shear zones. Minor quantities of vuggy crystalline quartz and jasperite have
been noted as a component of the stream bedload.
Polyphasal intrusive events of diorite to dacite composition are observed as small
dykes up to large stock bodies. Intrusive rocks observed include porphyritic
andesite, hornblende diorite, quartz diorite, feldspar porphyry, tonalite and intrusive
diatreme breccia in the appropriate chronological order (Clode, 2002).
A thick veneer of Quaternary epiclastic breccias blanket the southern part of the
property. The topography is extremely steep. In the northeast corner of the property
Quaternary alluvium deposits are prolific along fault valleys and catchment basins.
Structural studies carried out by Newmont of mineralized districts suggest that
there are three main structural grains and these NW, N-S and NE trends are related
to copper and gold mineralization in the region (Clode, 2002). "...The NNE to NE
trends (extensional or synthetic faults) form the mineralized corridors hosting
porphyry Cu-Au mineralization, whilst later through-going NW trending faults are
interpreted as late stage or post-porphyry. Late stage epithermal veins and post
mineral dykes are developed along the NW and N-S trending faults..."
Remote sensing studies together with modeling of airborne magnetic data indicate
that the controlling NNE trending mineralized structural corridor present on the
Newmont property extends onto Southern Arc's property. Limited surface evaluation
work and aerial sorties by the company support this finding.

Deep-water Reservoirs: Lessons Learned from Exploration and Production

What can we learn about deep-water reservoirs from fields currently in production?
In frontier and immature deep-water provinces, where well data are scarce, seismic
coverage is patchy and risks are high, explorationists are increasingly turning to
analogue provinces and fields for guidance in predicting trap configuration,
reservoir character and production performance. Development strategies can also
benefit from the experiences - and mistakes - of other operators in deep-water
fields. Such an empirical approach has been adopted by C&C Reservoirs Ltd in an
ongoing global review of the exploration and development characteristics of nearly
100 deep-water fields. Here, 'deep-water' denotes the environment of reservoir
deposition rather than the bathymetry of the present-day field location.

The studied fields have a wide geographic distribution, with 40 from North America,
34 from the UK and Europe, 10 each from Latin America and Africa and three from
the Far East. A total of 30 different basins are covered that are grouped into three
main types: passive-margin basins (e.g., Gulf of Mexico, Campos and Lower Congo
basins), transform-margin basins (e.g., Los Angeles, Bredasdorp and Sabah basins),
and intracontinental basins (e.g., Central North Sea, Gulf of Suez and Carnarvon
basins). By comparing the key characteristics of deep-water fields in these three
basin types, important exploration and development lessons can be learned that
can be applied to prospects and new discoveries.

Focusing initially on deep-water fields in passive-margin basins, recurring patterns

of trapping and reservoir architectural styles are recognized. Overwhelmingly,
passive-margin fields are contained in combination structural-stratigraphic traps,
with 80% showing some element of stratigraphic closure, principally depositional
pinch-out, which generally tends to diminish in importance upslope with increasing
structuration and sand occurrence. Basinwide mobile substrate (salt or shale)
thickness controls regional deformation style, the likelihood of structural trapping
and reservoir distribution. Among the studied fields, six principal deep-water
reservoir types are recognized, whose abundance varies across the continental
slope: (1) channel-dominated reservoirs, which are commonest on the middle slope;
(2) sheet-dominated reservoirs - middle-lower slope; (3) leveed-channel reservoirs upper slope; (4) canyon-fill reservoirs - upper slope-shelf; (5) debrite reservoirs upper slope; and (6) contourite reservoirs - lower slope-abyssal plain.

The studied fields indicate that development strategies and recovery efficiencies in
deep-water reservoirs are controlled primarily by hydrocarbon type, sand-body
connectivity, reservoir permeability and natural drive mechanism. The presence of

strong aquifer drive in conventional-oil fields leads to higher recoveries and may
obviate the need for water injection facilities that are extremely costly in deepwater locations. Deep-water reservoirs with solution-gas drives and those with
primary gas caps yield lower ultimate recoveries. Aquifer drive tends to be weak
where individual sand volumes are small, faulting is intense and/or reservoirs are, or
have been, deeply buried. The high porosities (commonly >25%) of most deepwater reservoirs, particularly in passive-margin basins, yield high well potentials,
but control of production of these poorly consolidated sands is often key to
optimizing well recoveries, especially where oils are viscous. Although few
extended-reach horizontal wells have so far been drilled, there is no technological
barrier to their drilling in ultra-deep waters and they are likely to prove essential for
maximizing recovery from variably interconnected deep-water reservoirs.